What are primary activities in the value chain?

Primary activities in the value chain refer to those activities that are directly involved in the creation, delivery, and support of a product or service. This includes processes such as inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service. These activities are essential because they represent the core processes that directly contribute to a firm's value proposition to its customers.

Focusing on primary activities allows firms to optimize their operations and directly impacts their ability to create competitive advantage. For instance, enhancing the efficiency of logistics can lower costs and improve delivery times, which can lead to increased customer satisfaction and retention.

In contrast, activities that support firm infrastructure or are related to competitive analysis are categorized as support activities. While these are important for the overall functioning and strategy of the firm, they do not directly contribute to the creation and delivery of the product in the same way that primary activities do. Similarly, while reducing operational costs is a critical goal, it falls under the broader objective of operational excellence, rather than defining what primary activities are.